New York Senate Bill S00864

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Refer: 1/7/26

Caption

Caps the amount of collectible rent increases due to major capital improvements at six percent of the legal regulated rent.

Summary

This bill amends New York’s Emergency Tenant Protection Act of 1974 to limit how much rent can be collected each year from major capital improvement (MCI) increases. Under current law, landlords may seek rent increases to recover the cost of qualifying building-wide improvements such as heating, windows, plumbing, roofing, energy-efficiency, or infrastructure work. The bill keeps the existing framework for approving MCIs, but adds a cap so that the collectible increase may not exceed 6 percent of the legal regulated rent in any year, with any excess spread into future years. The bill also preserves and clarifies rules for temporary MCI increases, including prospective collection after notice to tenants and limits on annual collection. It states that no retroactive payments may be included in approvals for temporary MCI increases, and it maintains a 2 percent annual collection cap for those increases. The measure takes effect immediately and is aimed at limiting the pace at which rent-regulated tenants can be charged for building improvement costs.

Impact

If enacted, the bill would amend the Emergency Tenant Protection Act’s rent-regulation provisions by restricting the annual collectibility of MCI-related rent increases for rent-stabilized or otherwise regulated housing accommodations. It would not eliminate landlords’ ability to seek MCI adjustments, but it would slow the rate at which those increases can be passed through to tenants and would require any amount above the annual cap to be deferred to later years. The bill would affect the Division of Housing and Community Renewal’s administration of MCI orders, landlords of regulated buildings, and tenants paying legal regulated rent.

Sentiment

The bill text and caption indicate a tenant-protection approach focused on limiting rent burdens tied to building repairs and upgrades. No committee transcript or vote record is provided, so there is no documented floor or committee debate in the supplied materials. Based on the bill’s purpose, its likely support comes from tenant advocates and sponsors seeking rent affordability, while opposition would be expected from landlord and property-owner interests concerned about cost recovery and building maintenance financing.

Contention

The main point of contention is the balance between tenant affordability and landlord cost recovery. Supporters are likely to argue that MCI increases can produce steep rent hikes that outpace tenants’ ability to pay, especially in regulated housing, and that a 6 percent annual cap prevents sudden increases. Opponents are likely to contend that limiting collectible increases could make it harder for owners to finance necessary capital repairs, preserve buildings, and invest in infrastructure, particularly where improvement costs are substantial or long-term amortization is needed.